Choppies revenue up 34%

SHARE   |   Tuesday, 14 March 2017   |   By Staff Writer
Choppies revenue up 34%

Choppies revenue for the half year period ending December 31, 2016 has gone up by 34 percent, driven mainly by the Botswana business. Revenue increased from P3.5 billion to P4.7 billion during that period, with the Botswana business in which Choppies run 83 stores, contributing 49 percent of that. Choppies, however, saw its profit after tax going down by 47 percent, and the group says profits in Botswana were materially impacted by the strengthening of the South Africa Rand against the Botswana Pula that resulted in a foreign exchange transaction gain lower than expected compared to the previous period. The grocery retail group, which now has a total of 202 stores across six countries, says business is doing well in other countries where it previously struggled to make profits. In South Africa sales are said to have grown strongly in the last quarter of 2016 with the continuation of the trend expected to result in the business achieving break even. In spite of challenging economic conditions in Zimbabwe, profits have increased substantially with revenue growth of 19 percent. Business in Kenya, Tanzania and Zambia where it is still in embryonic stages is progressing well according to the financial statements. On the day in which it unveiled its results – Tuesday – the company’s share price went down by 5 Thebe to end the day trading at P2.50.



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